Upheld: balance transfer error and complaint handling failure complaint against MBNA Limited
Financial Ombudsman decision DRN-6334429 of 2026-05-27T00:00:00+00:00. balance transfer error and complaint handling failure complaint against MBNA Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6334429 |
|---|---|
| Decision date | 2026-05-27T00:00:00+00:00 |
| Firm | MBNA Limited |
| Product | credit card |
| Claim type | balance transfer error and complaint handling failure |
| Outcome | Upheld |
| Remedy | MBNA to pay an additional £200 for distress and inconvenience caused to Mrs L, on top of the £760 already agreed (£180 balance transfer fee refund + £180 for interest charges + £400 for distress and inconvenience). |
Summary
Mrs L attempted a balance transfer from MBNA to another provider on 3 December 2025, which was rejected and returned to MBNA the next day. However, the funds disappeared for approximately eight weeks, during which MBNA provided incorrect information stating they had not received the transfer back. The funds were eventually located in an MBNA holding account and returned on 29 January 2026. MBNA offered £760 in compensation, but Mrs L sought significantly more, including statutory interest and upper-band compensation. The ombudsman upheld the complaint but rejected Mrs L's additional claims, finding that a total of £600 in distress and inconvenience compensation was fair and reasonable, and instructed MBNA to pay an additional £200 beyond their original offer.
The Ombudsman's reasoning
The ombudsman upheld the complaint, finding that MBNA admitted they got things wrong by failing to identify the returned funds and providing incorrect information to Mrs L. However, the ombudsman rejected Mrs L's request for statutory interest (as these were borrowed funds, not her own money) and rejected her request for compensation in the upper band of £2,500-£3,000, finding that the total compensation of £600 (£400 from MBNA plus £200 additional) was fair and reasonable for the distress and inconvenience caused. The ombudsman also clarified that complaint handling itself is not a regulated activity and cannot be separately compensated, but the elements were considered within the overall distress and inconvenience award.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| MBNA Limited, all decisions | 3,866 | 28% |
Source
Read the original decision on the Financial Ombudsman Service website